*P14-4B Data for Marquette Company are presented in P14-3B.

Price: $1.99

The income statement of Marquette Company is presented on page 688.
Additional information:
1. Accounts receivable decreased $520,000 during the year, and inventory increased $140,000.
2. Prepaid expenses increased $175,000 during the year.
3. Accounts payable to merchandise suppliers increased $50,000 during the year.
4. Accrued expenses payable increased $165,000 during the year

Marquette Company
Income Statement
For the Year Ended December 31, 2008
Sales revenue		5,400,000
Cost of goods sold
Beginning inventory	1,780,000
Purchases	3,430,000
Goods available for sale	5,210,000
Ending inventory	1,920,000
Total cost of goods sold		3,290,000
Gross profit		2,110,000
Operating expenses
Selling expenses	420,000
Administrative expense	525,000
Depreciation expense	95,000
Amortization expense	20,000	1,060,000
Net income		1,050,000

Instructions
Prepare the operating activities section of the statement of cash flows using the direct
method.